BILL NUMBER: AB 2157	CHAPTERED  09/20/00

	CHAPTER   553
	FILED WITH SECRETARY OF STATE   SEPTEMBER 20, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 18, 2000
	PASSED THE ASSEMBLY   AUGUST 22, 2000
	PASSED THE SENATE   AUGUST 18, 2000
	AMENDED IN SENATE   JUNE 27, 2000
	AMENDED IN ASSEMBLY   MARCH 28, 2000

INTRODUCED BY   Assembly Member Lowenthal

                        FEBRUARY 23, 2000

   An act to amend Sections 50083, 50086, 50960, and 51331 of, and to
add Section 50076.6 to, the Health and Safety Code, relating to
housing.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2157, Lowenthal.  Housing:  loans.
   Existing law authorizes the California Housing Finance Agency to
issue revenue bonds and make construction and mortgage loans to meet
the multifamily rental housing needs of persons and families of low
or moderate income.  For that purpose, "mortgage loan" is defined as
a long-term loan secured by a mortgage made for permanent financing
of a housing development or residential structure.
   This bill would expand that definition to any loan, as defined,
that is made for financing to create or preserve the long-term
affordability of a housing development or residential structure.  The
bill would make related changes.  It would also require a loan
document for a loan that is not secured by real property and is made
to a natural person to state that the loan is a recourse obligation
and made subject to or sold pursuant to a lien.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 50076.6 is added to the Health and Safety Code,
to read:
   50076.6.  "Loan," for purposes of provisions relating to the
agency, means an obligation to repay funds advanced by the agency for
the purpose of financing housing that is evidenced by a promissory
note or other instrument in writing and that may or may not be
secured by real or personal property.
  SEC. 2.  Section 50083 of the Health and Safety Code is amended to
read:
   50083.  "Mortgage" means a mortgage, deed of trust, or other
instrument that may be a lien on real property.  "Mortgage" includes
the note secured by such an instrument.
  SEC. 3.  Section 50086 of the Health and Safety Code is amended to
read:
   50086.  "Mortgage loan" means a loan that is secured by a mortgage
and is made for financing, including refinancing of existing
mortgage obligations as authorized by regulation of the agency, to
create or preserve the long-term affordability of a housing
development or a residential structure in the state, or a buy-down
mortgage loan secured by a mortgage as authorized by regulation of
the agency, of an owner-occupied unit in this state.
  SEC. 4.  Section 50960 is added to the Health and Safety Code, to
read:
   50960.  A loan document for a loan that is not secured by real
property and is made to a person, not including a firm, association,
partnership, organization, corporation, limited liability company, or
other group, however formed, shall state that the loan is a recourse
obligation and that the personal property of the borrower may be
subject to or sold pursuant to a lien in order to pay the obligation.

  SEC. 5.  Section 51331 of the Health and Safety Code is amended to
read:
   51331.  Subject only to the limitations prescribed in this
chapter, the agency, in addition to any other power conferred by this
part with respect to multifamily rental housing and housing
developments, may make or undertake commitments to make loans to
housing sponsors to finance the acquisition, construction,
rehabilitation, refinancing, or development of multifamily rental
housing.  For this purpose, the agency shall enter into regulatory
contracts and other agreements with housing sponsors receiving loans
pursuant to this chapter to ensure compliance with this chapter.
